Title 75B, Title 75B: Trusts

75B-2-416. Modification to achieve settlor's tax objectives. (1) To achieve the settlor's tax objectives, the court may modify the terms of a trust in order to achieve the settlor's tax objectives. (2) The court may provide that the modification has retroactive effect.

75B-2-417. Combination and division of trusts. After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts if the result does not impair rights of any beneficiary or adversely affect …

75B-2-501. Rights of beneficiary's creditor or assignee. (1) To the extent a beneficiary's interest is not protected by a spendthrift provision or Chapter 1, Part 3, Asset Protection Trust, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary…

75B-2-502. Spendthrift provisions for beneficiaries other than the settlor. (1) A spendthrift provision for a beneficiary other than the settlor is valid only if the spendthrift provision restrains both voluntary and involuntary transfer of a beneficiary's interest, even if the b…

75B-2-503. Exceptions to spendthrift provision. (1) As used in this section: "Child" includes any person for whom an order or judgment for child support has been entered in this or another state. "Civil accounts receivable" means the same as that term is defined in Section. 77-32…

75B-2-504. Discretionary trusts -- Effect of standard. (1) As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state. (2) Except as otherwise provided in Subsection, whether or not a trust contai…

75B-2-505. Creditor's claim against settlor. Regardless of whether the terms of a trust contain a spendthrift provision, the following rules apply: (1) During the lifetime of the settlor, the property of a revocable trust is subject to the claims of the settlor's creditors. If a …

75B-2-506. Overdue distribution. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the dis…

75B-2-507. Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.

75B-2-508. Notice to creditors. (1) A trustee for an inter vivos revocable trust, upon the death of the settlor, may publish a notice to creditors: once a week for three successive weeks in a newspaper of general circulation in the county where the settlor resided at the time of …

75B-2-509. Limitations on presentation of claims. (1) All claims against a deceased settlor which arose before the death of the deceased settlor, whether due or to become due, absolute or contingent, liquidated or unliquidated, founded on contract, tort, or other legal basis, if …

75B-2-510. Manner of presentation of claims. (1) Claims against a deceased settlor's estate or inter vivos revocable trust shall be presented as follows: The claimant may deliver or mail to the trustee, or the trustee's attorney of record, a written statement of the claim indicat…

75B-2-511. Classification of claims. (1) If the applicable assets of the deceased settlor's estate or trust estate are insufficient to pay all claims in full, the trustee shall make payment in the following order: reasonable funeral expenses; costs and expenses of administration;…

75B-2-512. Allowance of claims. (1) As to claims presented in the manner described in Sectionand within the time limit prescribed in Section, the trustee may mail a notice to any claimant stating that the claim has been allowed or disallowed. 75B-2-510 75B-2-509 If, after allowin…

75B-2-513. Payment of claims. (1) Upon the expiration of the earliest of the time limitations provided in Sectionfor the presentation of claims, the trustee shall pay the claims allowed against the deceased settlor's estate in the order of priority prescribed, after making provis…

75B-2-514. Secured claims. Payment of a secured claim shall be upon the basis of the amount allowed if the creditor surrenders the creditor's security, but otherwise payment shall be based upon one of the following: (1) if the creditor exhausts the creditor's security before rece…

75B-2-515. Claims not due and contingent or unliquidated claims. (1) If a claim which will become due at a future time or a contingent or unliquidated claim becomes due or certain before the distribution of the trust estate, and if the claim has been allowed or established by a p…

75B-2-516. Counterclaims. (1) In allowing a claim, the trustee may deduct any counterclaim which the deceased settlor's estate has against the claimant. In determining a claim against a deceased settlor's estate, a court shall reduce the amount allowed by the amount of any counte…

75B-2-517. Execution and levies prohibited. (1) No execution may issue upon nor may any levy be made against any property of the deceased settlor's estate under any judgment against a deceased settlor or a trustee. (2) This section may not be construed to prevent the enforcement …

75B-2-518. Compromise of claims. When a claim against a deceased settlor's estate has been presented in any manner, the trustee may, if the claim appears in the best interest of the deceased settlor's estate, compromise the claim, whether due or not due, absolute or contingent, l…

75B-2-519. Encumbered assets. (1) If any assets of the deceased settlor's estate are encumbered by mortgage, pledge, lien, or other security interest, the trustee may pay the encumbrance or any part thereof, renew or extend any obligation secured by the encumbrance, or convey or …

75B-2-601. Capacity of settlor of revocable trust. The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.

75B-2-602. Revocation or amendment of revocable trust. (1) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This Subsectiondoes not apply to a trust created under an instrument executed before May 1, 2004. (1)…

75B-2-603. Settlor's powers -- Powers of withdrawal. (1) To the extent a trust is revocable by a settlor, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other…

75B-2-604. Limitation on action contesting validity of revocable trust -- Distribution of trust property. (1) A person shall commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of: three years after the se…

75B-2-701. Accepting or declining trusteeship. (1) Except as otherwise provided in Subsection, a person designated as trustee accepts the trusteeship: (3) by substantially complying with a method of acceptance provided in the terms of the trust; or if the terms of the trust do no…

75B-2-702. Trustee's bond. (1) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the req…

75B-2-703. Cotrustees. (1) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (2) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. (3) Subject to Section, a cotrustee must participate in the performance of …

75B-2-704. Vacancy in trusteeship -- Appointment of successor. (1) A vacancy in a trusteeship occurs if: a person designated as trustee rejects the trusteeship; a person designated as trustee cannot be identified or does not exist; a trustee resigns; a trustee is disqualified or …

75B-2-705. Resignation of trustee. (1) A trustee may resign: upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or with the approval of the court. (2) In approving a resignation, the court may issue orders and impose conditio…

75B-2-706. Removal of trustee. (1) The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on the court's own initiative. (2) The court may remove a trustee if: the trustee has committed a serious br…

75B-2-707. Delivery of property by former trustee. (1) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of…

75B-2-708. Compensation of trustee. If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.

75B-2-709. Reimbursement of expenses. (1) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: expenses that were properly incurred in the administration of the trust; and to the extent necessary to prevent unjust enrichment of the …

75B-2-801. Duty to administer trust. Upon acceptance of a trusteeship, the trustee shall administer the trust expeditiously and in good faith, in accordance with the trust's terms and purposes and the interests of the beneficiaries, and in accordance with this chapter.

75B-2-802. Duty of loyalty. (1) A trustee shall administer the trust solely in the interests of the beneficiaries. (2) Subject to the rights of persons dealing with or assisting the trustee as provided in Section, a sale, encumbrance, or other transaction involving the investment…

75B-2-803. Impartiality. If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.

75B-2-804. Prudent administration. (1) A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. (2) In satisfying this standard, the trustee shall exercise reasonable car…

75B-2-805. Costs of administration. In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

75B-2-806. Trustee's skills. A trustee who is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.

75B-2-807. Control and protection of trust property. A trustee shall take reasonable steps to take control of and protect the trust property.

75B-2-808. Recordkeeping and identification of trust property. (1) A trustee shall keep adequate records of the administration of the trust. (2) A trustee shall keep trust property separate from the trustee's own property. (3) Except as otherwise provided in Subsection, a trustee…

75B-2-809. Enforcement and defense of claims. A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

75B-2-810. Collecting trust property. A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee, unless the terms of t…

75B-2-811. Duty to inform and report. (1) Except to the extent the terms of the trust provide otherwise, a trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for the qualified b…

75B-2-812. Discretionary powers -- Tax savings. (1) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith a…